Pressure is mounting in the cement industry in Peru. Facing new competitors and more demanding customers, how could Cementos Pacasmayo protect its hard-won market share and prepare for future growth?
To obtain agility and speed, Cementos Pacasmayo embarked on a digital transformation journey by implementing a suite of SAP HANA® solutions, with help from IBM® Services.
88%quicker uploads of warehouse data enable detailed views of shipping and sales
100%of transactions can be completed the first time, avoiding the need for rework
90%higher system availability safeguards business continuity and service delivery
Business challenge story
Building a brighter future
The construction sector in Peru is currently under considerable pressure. Customers are increasingly demanding more sustainable and cost-effective building products, and new competitors are entering the market all the time. These new entrants are pressing on established and trusted companies such as Cementos Pacasmayo, which must now compete hard to gain customer loyalty and maintain hard-won market share.
Dante Cárdenas, IT Manager at Cementos Pacasmayo, explains: “We are the leading construction materials company in the whole northern region of Peru, but this doesn’t mean that we rest on our laurels. We are acutely aware that competition in our sector is heating up, and we have started to take measures to tackle this challenge.
“As a company, we have a philosophy of continuous improvement: better construction materials, better building projects, better performance and greater staff productivity. This translates into deploying the best-in-class technology solutions to support the numerous, crucial aspects of our business operations.
“To beat these new rivals and protect our market share, we needed forward-looking IT solutions that could allow seamless business continuity across different digital channel1s—including web and mobile—to offer real-time data analysis, and provide virtually limitless scalability.”
Cementos Pacasmayo runs its core business operations on SAP® Business Suite. With an aging, slow and rigid IT architecture, how could Cementos Pacasmayo implement these new ways of working while capitalizing on the integration and efficiency of its existing applications?
Hitting the ground running
As a long-established IBM and SAP client, Cementos Pacasmayo had no hesitation when the time came to choose the technology partners for its digital journey, as Dante Cárdenas confirms: “We have a very long and successful relationship with IBM, and have been deploying SAP solutions for many years now.
“We identified database performance as the main bottleneck, and we were impressed to learn about the features and capabilities of SAP HANA. Deploying this solution was going to equip us with the speed, flexibility and scalability that our digital transformation required, and we proceeded with great conviction.”
Cementos Pacasmayo engaged IBM to assist with the digital transformation and migration to the new solution, including upgrades of some mobile applications and optimization of processes to increase flexibility and control. As part of a two-year project, IBM will help Cementos Pacasmayo identify best practices in logistics and production.
Dante Cárdena comments: “As well as with SAP, we have a long and profitable partnership with IBM, which is our ideal partner. IBM Services ticked all the boxes. In addition, IBM offers a unique mix of local presence and global reach, giving us the best of both worlds.”
Cementos Pacasmayo chose to implement SAP Business Suite powered by SAP HANA hosted in a highly resilient and secure private cloud on managed servers within an IBM datacenter in Peru.
Dante Cárdenas remarks: “SAP HANA represents the first step towards our ongoing digital transformation. With this innovative solution we are gradually abandoning old and inefficient ways of working in favor of forward-looking and more strategic ones. For example, with SAP HANA we will be able to implement capabilities such as mobile and real-time analysis that will enhance the customer experience and help us to safeguard our market share.”
Paving the way for a digital transformation
Deploying SAP Business Suite powered by SAP HANA as the platform for Cementos Pacasmayo’s core business processes, the firm’s 300 SAP users are enjoying improved information delivery.
“SAP HANA delivers greater speed of analysis, which is crucial to accelerate our C-level executives’ decision-marking processes, beating even the swiftest, most tech-savvy competitor to the punch,” states Dante Cárdenas.
“In the past, for example, it took us 2.5 hours to complete the uploading process of our warehouse data—crucial information on product availability, customer orders, sales and invoicing operations, and much more. Now, thanks to SAP Business Suite powered by SAP HANA, we have that data to hand in just 15 minutes—some 88 percent faster. This helps us to have a much better, more reliable and up-to-date view of what is happening across our different warehouses, and where we can intervene to maximize performance and productivity.”
Whilst Cementos Pacasmayo is still in the first phase of its digital transformation project, the firm is already looking forward to leveraging SAP S/4HANA® in the near future. The company has recently launched a pilot project with SAP Fiori®, as Dante Cárdenas comments: “We intend to keep working with IBM Services and SAP during the next stages of this project, as we ultimately want to migrate all of our non-SAP processes to SAP HANA and take advantage of mobile capabilities. SAP Fiori will add an extra layer of user-friendliness across our different departments, for a pleasant, seamless experience.”
Dante Cárdenas concludes: “The first milestone towards an all-encompassing digital transformation is complete, achieved this with expert assistance from IBM Services and the capabilities of SAP Business Suite powered by SAP HANA. We can’t wait to find out what the future holds for the rest of this exciting journey, and we are confident that IBM and SAP will be there for us each step of the way.”
About Cementos Pacasmayo
Incorporated in Lima, Peru, in 1949, Cementos Pacasmayo specializes in manufacturing, distribution and sales of cement and construction products. Serving the northern part of the country, the firm also offers services for major infrastructure and development projects, and has an ongoing commitment towards sustainability.
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